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Fiat plans to expand the 500 family with a wagon to be introduced at the Geneva motor show.

Fiat 500 lineup to get a wagon

January 16, 2012

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Fiat will look to gain more traction in the U.S. market with a wagon version of the subcompact 500. Fiat brand chief Olivier Francois said the company will introduce a five-door model at the Geneva motor show in March.

Fiat sold fewer than 20,000 copies of the 500 last year in the United States, well below its initial target.

"We thought we were going to show up and just because of the fact people like gelato and pasta, people will buy it," CEO Sergio Marchionne told reporters. "This is nonsense."

The company is betting on a strategy pioneered by BMW's Mini brand. Start out with your base model, the 500, and then expand the lineup with a performance version, the Abarth, and a utilitarian version, a wagon. The new wagon model has been developed for the U.S. market and will have bigger proportions than those of the current 500.

The brand currently has 137 dealerships open in the United States and plans to open at least 13 more. Timothy Kuniskis, head of the Fiat brand in North America, said he thinks there are still markets to conquer.

"The dealers are very supportive," Kuniskis said. "We still have growth opportunities because we've got 12 states that don't have a single store."

The company hasn't announced a name yet for the new wagon but it did say that it will be built at the company's plant in Serbia.

Fiat owns a majority stake in Chrysler and also sells Alfa Romeo cars. The Italian sports-car maker plans to return to the States at the end of 2013.